The naphtha market has been facing tight supply because of low Indian exports and limited arbitrage barrels from Europe, traders said.

However, on the other hand, naphtha demand is strong in Asia, as South Korean producers are operating their crackers at full tilt and they have a preference for naphtha feedstock instead of the more costly propane, they added.

Spot premiums concluded in recent naphtha trades have been on an uptrend, rising to near record-high prices, traders said.